Clearly this is a price of entry sort of thing... but 3218 is so small that you can't get zoning permission to build more than one unit on it... even at the highest valuation of land ever in Santa Monica it should only be about $350,000.

They're not going to get it, but it's going to be interesting to watch. It's possible that a 450 square foot house, set in a 1400 square foot ditch (as far away from the ocean as you can get while still being in Santa Monica, with a view of a parking lot) is going to set the land value record for 90404.